Investment Corner: How Does Inflation Impact Investing Strategy?
Two years ago, I was writing about the high inflation of 2022 and 2023. Right around that time inflation started dropping dramatically, all the way to where it sits now—below 3%. Meanwhile, interest rates have not dropped, and are holding at rates substantially higher than we saw just a few years ago. The 10-year treasury rate is sitting at 4.4%, compared to 1.6% at the beginning of 2022.
All of this means that—for the moment—you can actually find money market funds and CDs that are paying interest rates above the rate of inflation! As an example, Schwab’s Treasury Obligations Money Market Fund (SNOXX) paid a 7-day yield equivalent of 4.00% as of June 13th. That’s a full percentage point—or more– than the current…
